UPDATE 3-Oil slips on U.S. stimulus outlook but supply worries support
* Investors worry Fed could curb stimulus in Sept
* Libya unable to give clear indication on Sept loadings
* Coming up: U.S. weekly EIA stocks data at 1430 GMT
(Updates throughout, changes dateline, previous SINGAPORE)
LONDON, Aug 14 (Reuters) - Brent crude oil slipped towards $109 a barrel on Wednesday as investors worried that the U.S. Federal Reserve could curb its commodity-friendly economic stimulus, but Middle East supply disruptions underpinned prices.
Positive U.S. retail sales data supported the dollar and raised expectations that the U.S. central bank will begin winding down its bond-buying as early as September.
Brent was down 42 cents at $109.40 a barrel at 0841 GMT, while U.S. oil dipped 44 cents to $106.39.
Brent oil futures for September delivery rose for a third straight session on Tuesday, touching their highest in nearly two weeks at $110.06 a barrel.
But analysts said prices were unlikely to sustain that level as European refiners cut processing rates because of gains in oil costs stemming from supply-curbing unrest in OPEC members Libya and Iraq.
"Crude has to balance between disruptions in Libya and Iraq and the problem of global demand from the rise of the dollar. That is going to cap gains in Brent," said Olivier Jakob, energy markets analyst at Petromatrix in Zug, Switzerland.
Brent had risen back above its 200-day moving average on Monday at $108.17, a technical marker watched by traders. The contract also fully breached its short-term 10- and 15-day moving averages on Tuesday.
"We expect the London market to remain rangebound in some more jittery trading here with limited downside due to constructive short-term fundamentals," Andrey Kryuchenkov of VTB Capital said.
Concerns over supply disruptions in Libya and Iraq have continued to support prices, with markets expecting no immediate end to the volatility.
Libya's state National Oil Corp said in a statement addressed to shippers on Tuesday that it could not provide September loading schedules, normally due by now, as unsettled labour disputes at its ports have disrupted operations.
Maintenance at Iraq's southern oil export hub is also set to slash supplies by 500,000 barrels per day in September.
"With the supply issues, and looking at the macroeconomic picture, it does look a little better now. Even Europe is surprising on the upside," said Jim Ritterbusch, president of Chicago-based Ritterbusch & Associates.
"But the market is still oversupplied and we don't quite yet have demand at the ... levels needed to draw down the overhang."
Better-than-expected French and German growth figures indicated on Wednesday that the euro zone had probably climbed out of recession. A flash estimate for euro zone growth was also set to show a recovery, but analysts said it would take more sustained growth to boost European oil demand.
The American Petroleum Institute's weekly report showed on Tuesday that U.S. crude oil stockpiles fell last week, although the decrease in inventories was smaller than expected.
(Additional reporting by Luke Pachymuthu in Singapore; Editing by Dale Hudson)